Two events this week could impact upon the EU debt crisis in significant ways. The first is the ruling by the German Federal Constitutional Court in Karlsruhe that aid provided by Germany to indebted Eurozone states was in fact constitutional. The decision was in response to various legal complaints that had been filed against Germany’s […]

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As the Eurozone debt crisis took a decidedly alarming turn in past weeks, the European Central Bank responded with resumption of their bond-purchasing program that had begun originally in May 2010. This measure had been intended to solve the debt crisis in Greece, though with the benefit of hindsight we can see that it failed […]

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Whenever things get really bad in the Eurozone debt crisis, people start to talk about countries leaving, abandoning the euro and readopting former national currencies. For a while it was Greece – Greece should leave the Eurozone, there would be no need for internal devaluation if Greece went back to the Drachma, the Eurozone wouldn’t […]

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Comments Off on Eurozone Break-up is Not a Solution

Last week, I discussed the latest response by European leaders to the Eurozone debt crisis, which emerged from the European Council summit of 21st July. Since then, much coverage of the crisis has continued to evaluate the impact of the deal reached there on the situation in Greece and other peripheral countries, as well as […]

Expectations were not particularly high going into last Thursday’s emergency European Council meeting in Brussels, due partly to the fact that German Chancellor Angela Merkel had warned spectators not to anticipate any grand solution to the debt crisis. In addition to this, underwhelming results from a number of previous such summits had conditioned onlookers to […]

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As the risk increases of a US default in the absence of Congressional approval to raise the Federal debt ceiling, it might be reasonable to see the dollar weaken against the euro, though it would be more reasonable to expect this were there not already a raging debt crisis in the Eurozone. Further to that, […]

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Comments Off on Why has the Euro Stayed Strong Against the Dollar Throughout the Debt Crisis?

As EU leaders attempt to steer through the ongoing debt crisis in the Eurozone, it seems that short-term, temporary fixes are the central focus, while long-term solutions that will help to prevent future crises have received far less consideration. This is not so surprising, as the immediate challenges posed by a possible Greek default or […]

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€uro-thoughts

Susan Fuchs is a PhD Candidate in the School of Public Policy at University College London. Her Doctoral Research looks at International Negotiations, with a focus on negotiations between EU Member States over the Stability and Growth Pact. For more information: http://www.ucl.ac.uk/spp/people/research-students/susan-fuchs